Created: 9th June, 2010 23:21 (Archiv)
Mr. Speaker, distinguished Members of Parliament,
Ladies and Gentlemen,
Fellow MPs,
First of all, allow me to inform you briefly on the progress made in
fighting the flood. As you are probably aware, an unprecedented flood
has developed and the highest ever water level was reached in Northern
Hungary. The situation turned especially critical over the weekend in
the Hernád Valley, six counties had to be included in the areas where a
state of emergency had to be declared. Declaring danger and emergency
resulted in concomitant unpleasant measures as well. I would like to
thank all those who live in the areas affected by such measures for
taking part in fighting the disaster.
Despite all the efforts, a lot of people were forced to leave their
homes and still a lot of them live in uncertainty about what may happen
to their deserted assets. First of all I would like, if you allow me,
perhaps on behalf of all of us, to express our commiserations to those
hit by this natural disaster and to their families. Perhaps I can even
say that besides commiserations, on behalf of all of us I can express my
solidarity, and I can promise to give all help, just as we have done so
far, in the coming days to fight the disaster and to repair the
damages, and then during the rebuilding to recreate the conditions for a
life worthy of a human being.
I want everyone to know that we will not leave anyone behind. I would
have been happy to have missed such an experience, but you all know that
the Civic Government had been forced before, at the beginning of the
second millennium and at the end of the previous century, to recover the
areas flooded by the Tisza River and to rebuild the area. I am
confident that we still have the knowhow, and we will be able once again
to help all Hungarians and their families quickly and efficiently
during the rebuilding process.
Besides expressing our commiseration and solidarity and providing help, I
would like to say a few words of thanks: thanks to all who participated
in this painful, but splendid work, who gave their money, energy and
assets to such defence efforts. I would like to thank the local mayors
who gave their best to stand their ground in managing the fight against
the flood. I would like to thank the staff of the water management
authorities, whose performance has been outstanding throughout.
I would like to thank the members of the police force, not only to the
policemen as such, but also to the other organisations supervised by the
Ministry of the Interior; when the state of emergency was declared,
many staff members of such organisations followed the order without any
hesitation and appeared at the most critical defence lines, and in un
unprecedentedly short time raised the height of the dams, and defended
the settlements. I would like to thank the soldiers of the army, who
lost no time to appear, after the order from the Minister of Defence, in
high numbers at the area.
I would like to inform you especially that people from the penitentiary
were also ordered to participate: some of them were guarding the
inmates, and some of the perpetrators of lighter crimes were also
ordered to work on the dams. I want to share with you the information
that to our latest knowledge, up until now, first of all nobody has
escaped from among them, and second: they were in the front of the work
and gave a good example to all of us. I think that besides expressing
our appreciation for the necessary physical work done on site, they
enhanced the hope in us that life is such that if you make a mistake,
and you can correct it, you can become once again an appreciated member
of the community. Therefore I would like to thank the convicted
prisoners for the work and effort made on the dams.
Ladies and Gentlemen, naturally this is not the right time, but later a
summary and assessment study will have to be made on how and where this
emergency pointed to the weaknesses of our state organisation; where we
need to proceed with special attention when restructuring; where we need
to enhance the State of Hungary in order not to have to put up a good
show at a time of unexpected disaster, but to handle it with the routine
of the usual work.
Ladies and Gentlemen, Mr. Speaker, Fellow MPs,
In the second part of my speech today I would like to share with you
some of my thoughts on the economy of Hungary. First by way of summary I
would like to tell you that the time has come in the economy too, to
replace the old with a new one. You know that this year in April, on the
25 of April, the Hungarian electorate overthrew the old system, and we
are convinced that a new social contract evolved in the polling-booths
when Hungarians showed an unprecedented agreement in overthrowing the
old system and decided to build a new system of national cooperation.
People deemed the old system as unsuitable to lead the country out of
the current situation because in the past years they felt that it was
and it is unable to give a solution to the long standing troubles of the
country and to the challenges of the world of today. People very
sensibly see that it is not just an individual, personal lapse when
state owned companies, ministries, heads of universities, mayors and
leading politicians suffer the fate of being cuffed and led away due to
abuses often committed as organised crime; people see exactly that these
are not just individual lapses, but there is a basic, serious systemic
fault here, meaning that the system that is working here is
fundamentally wrong, and only the vested interests of dishonest
profiteers keep it running.
This failed, bad system made Hungary reach the point that she fell out
of the group of the 30 most competitive countries. As for the tax burden
on companies, out of 183 countries, we stand at the 151st place. We,
distinguished House, reached the point that tax bureaucracy forces us to
spend 330 hours of work a year for one person, while this number in
Ireland is 76 hours. The bureaucracy burden on employment - which is the
greatest problem in Hungary - is such that 203 hours of bureaucratic
efforts need to be made in a year for every person, while in Ireland
this is 36 hours. No wonder that people decided to give a clear and
strong mandate to build a new system.
This is not an easy job because the country expects us to demolish the
entire system, not just some elements, and to build a totally new one.
The country expect me and expects my government to do the same,
therefore we will work towards this.
You know it too because you could see here in the Session Hall of
Parliament that the work started when we created the foundations of a
new political system within the frameworks of the national cooperation
system; the foundations of the political system of national cooperation,
when a new Parliament was formed; we adopted the declaration of
national cooperation, reduced the number of politicians in Parliament as
well as in the local governments, adopted a document on national
cohesion, and we granted dual citizenship to Hungarians living outside
our borders. I hope this also played some role in the unexpected, huge
success of the Alliance of Voivodina Hungarians over the weekend at the
autonomous elections held in the Southern areas. Right from here, from
the Hungarian Parliament we congratulate István Pásztor and his
organisation.
In the second round we established the new government system of national
cooperation, the new ministerial structure, restored the permanent
(administrative) state secretary position, and launched the complete
restructuring process in public administration, the foundations of which
you can discuss here and now too, in the House.
And now we arrived at a new important step, to a third round, if you
like, and this means laying the foundations of the economic system of
national cooperation. I ask you to continue with this work. We arrived
at the third round, this is all about the destiny of the country,
therefore we cannot say that it is the fight of armatures that is
happening, so let us get prepared for at least twelve rounds, Ladies and
Gentlemen, in the coming weeks and months.
I hope that a new era is starting in the economy of Hungary too, with
the system of national cooperation established by the voters. I hope
that you will see from what I have to say that the old benchmarks will
lose their validity, and new ones will enter into force. Building a new
economic system will naturally change fundamentally all important areas
in life because every element of a totally rotten mechanism needs to be
replaced. The most important thing, Ladies and Gentlemen, is to work
predictably, carefully and precisely, with attention and consistency.
People expect, even during restructuring, a stable, well run system, a
system that can function reliably on the long run. Therefore,
distinguished fellow Members of Parliament, it is important what
criteria and principles are behind the building of a new economic
system, and along what criteria and principles will the new Hungarian
economy be reorganised.
The Government held a cabinet meeting over the weekend and adopted an
Action Plan, which I hope you allow me to call as the First Action Plan.
The Government will start the implementation of the Government
Programme by carrying out this First Action Plan. Just as I said during
the debate on the Government Programme, it is a compass that has been
discussed and adopted, and now the opportunity is open to discuss the
measures, the tools and the schedule: draft bills will be submitted to
the House for debate and Measures, Government measures, will be outlined
for the fellow Members of Parliament.
The First Action Plan focuses on two main thoughts. The first one is the
creation of a new economic system and the introduction of the principle
of mutual responsibility in the Hungarian economy. First I would like
to speak about some of the elements of the new economic system.
The starting point is, though I think I do not need to prove this in
this House that our political community is always especially sensitive
to the merits, light and glory of the past and of past moral
achievements, but Hungary wishes to be successful in today's world, and
not in yesterday's. Therefore we need to look forward. We can be
successful in today's world only if we look around and see what is
happening, what vital processes take place around us.
First I suggest that we take into consideration the gloomy, even
alarming economic weather that rules the world today. Alarming news is
coming from all over. The crisis, which is a concomitant of a deep
transformation, is not yet over, but our job is not to wail. Our job is
to use the typical, special Hungarian way of thinking and ingenuity and
try to use these external processes for our own purposes, meaning for
the benefit of Hungary and the Hungarian economy. There are some chances
to do this. The most decisive process worth noticing is that today
world economy is turning to a new direction. It seems that productive
capitalism has a future once again, and the times of speculative
capitalism are running out. We all know that the number one reason for
the economic crisis that tortures the world is that an overvaluation
rules the global market due to the fact that the money available in
world trade surpasses significantly, many times over the amount of the
real value we can find in the world. Consequently all real values are
overvalued in the books and in records, and a necessary consequence is
that bubbles form in the economy, and such bubbles start crises again
and again in the economy, which unfortunately no matter how much we
would like it, do not stop at the Hungarian borders.
Ladies and Gentlemen, Hungary can be successful in this rapidly changing
modern world only if we too, focus on productive capitalism, and turn
the global processes to out advantage. I mean that we fight back more
and more and with more and more determination all speculation, and
strengthen our efforts towards productive capitalism. I'd like to make
it clear without abusing your time by entering unnecessarily into the
details that productive capitalism focuses on work, speculative
capitalism focuses on speculation. Therefore it is important to see
clearly whether we can distinguish between speculation and work.
Distinguished Ladies and Gentlemen, the point is that we can make such a
distinction. I suggest that when building the new economic system we
consider as speculation when somebody gets hold of money in a way that
necessarily causes damage to others, and work should be defined as
earning money by creating value and by this others and the entire
community benefit.
Ladies and Gentlemen, I am convinced that only this type of productive
capitalism can create one million new jobs in ten years time in Hungary.
One of the global damages caused by speculative capitalism is that it
causes massive destruction of businesses and jobs around the world and
in Hungary too. Therefore the new Hungarian economic system must be
built upon the principle that puts production, meaning work in the place
of speculation. Therefore all measures and draft bills we recommend
should bear this principle.
Distinguished House, Members of Parliament, Mr. Speaker,
The main element and the foundation of all economic systems is the tax
system. The new economic system therefore will need a new tax system. We
recommend to the distinguished House not to patch up the currently in
force tax system, but rather to lay new foundations for a Hungarian tax
system and create a modern form to it that will be the token of the
future. Please think about it: a tax system working under normal
conditions is really a community shaping network of interests. When the
economic system is healthy, taxation is one of the strongest links
between the individual and the community, between the individual and the
nation. It is a strong and reliable link built on trust.
We lived through the opposite in Hungary, and we still live it. I think
that the tax system in Hungary was not built from start on trust, but
rather on distrust and speculation. Taxation was unjust on the one hand,
and on the other hand everybody felt it a punishment. It really was a
punishment. It was a punitive taxation because it required impracticable
things. With this it practically forced people to try to evade as much
as they could. This is how it happened, distinguished MPs, that honest,
law abiding citizens became losers, helpless duds, and finally this is
how people became convinced that it was not worth it to be honest and
law abiding in Hungary, because the world stood for the shrewd and
cunning. This is one of the reasons why so many people feel so negative
in Hungary, and this is why so many young people leave the country.
The current tax system is unjust, Ladies and Gentlemen, because it hits
those the hardest who work honestly, do business and try to do
something, act and create value, and leaves those in peace who are
cunning and tricky and speculate. You cannot catch up with those who
speculate with serious money; actually, we are at a stage when a mere
2.5 million taxpayers support 10 million people. One cannot build a
modern economy on such foundations, Ladies and Gentlemen! Since the
present tax system is built on distrust, nobody trusts it. Not the
taxpayers, not the state, not the investors, and not the businessmen.
Nobody. The fact that millions are forced to outsmart this tax system
just to survive, gave basis for a small group to make a business around
tax evasion and tax fraud. This became the world of off-shore knights
who managed to get even under the skin of the state, and were not
ashamed to take a good number of millions from the taxpayers' money even
after their several hundred millions of off-shore income.
Ladies and Gentlemen,
The policy put to an end by the voters poisoned the economy and society
through the tax system mostly. Therefore this tax system must be
replaced by a new one. With the old tax system we would never have a
chance to put the Hungarian economy on its feet again.
Ladies and Gentlemen,
I think it follows logically for all of us from what I said that in the
system of national cooperation, taxation will have to become a community
enhancing network of interests. I mean instead of punishment, taxation
should mean participation; participation in the system of national
cooperation. A kind of participation in which it is worthwhile to take
part, which is built upon trust and mutuality, that is fair and just. We
need to reach a point in Hungary despite all cynicism where tax evasion
would not be worth it, neither financially, nor morally. For this we
need a life-like, simple, feasible and work friendly tax system. So
simple, Ladies and Gentlemen, so simple that a person with only eight
grades of primary education could understand the rules that apply to him
or her. This is not just a question of the economy, this is also a
question of democracy, Ladies and Gentlemen!
Therefore, distinguished House, we intend to start a new era in taxation
as well. We plan to introduce significant tax cuts and radical
simplification in the tax system, in several steps.
Job creation will stand in the focus of the new tax system. If you
compare the Hungarian tax system with that of the neighbouring countries
running an economic race with us you can see very well that we have two
serious competitive disadvantages. One is that the neighbouring
countries running the race against us apply a single rate personal
income tax system, and all incomes, no matter what form they might take,
are taken out through this single rate system, and they have low
corporate tax rate, too. Thanks to this, I mean the competitive edge
they have in these areas, we turned from vanguards into rearguards
because the advantage they had in this race turned into our
disadvantage; this is how we became from the vanguards of eight years
ago the rearguards of today.
Accordingly, the First Government Action Plan includes seven measures to
cut taxes significantly and to simplify the tax system.
As Measure 1 we recommend to the distinguished House to cut corporate
tax after profits from 19 percent to 10 percent under an annual profit
of 500 million, thus we can support Hungarian small and medium sized
enterprises.
Measure 2 is to introduce the single rate family personal income tax; we
would switch over in two years and during this time we include 1.3
million, meaning 1 million and 300 thousand employees in the tax system,
and during this time we eliminate the institution of tax credit.
Ladies and Gentlemen,
Everyone will be a winner in this tax system, and transition will take
place gradually, as endurance allows. Consequently the phenomenon that
taxation is built on lies will cease to prevail; we are victims of a
chain of lies, and even the state does not take the levied tax
seriously, neither does the entrepreneur because he or she knows that
this was not the real intention of the state when it levied it, and
finally the employee also tries to avoid it wherever he or she can. One
cannot build the economy on such distrustful situation and morale,
therefore this chain of lies, this special Hungarian tax ring dance,
this ring of lies must be broken.
There are people, of course, who think that income tax, a single rate
income tax, and all withdrawal of money as income from the economy is
not compatible with family based taxation. This is a misconception,
Ladies and Gentlemen, and we will put forth a motion that unites these
two systems in harmony. If you allow me, I will come back to this later.
In Measure 3, of all the taxes burdening small and medium enterprises
ten so called small taxes will simply be wiped away in a single move.
Proposal 4 is to introduce the concept of income outside the tax system,
meaning non-taxable income, and to make it possible that if someone
provides work for others as a private individual out of after-tax money,
the one working should not have to pay any more taxes. I recommend this
under the principle of protection of private property, because the
state has nothing to do here any more.
Ladies and Gentlemen,
Measure 5 concerns freedom of taxation, meaning that the movement of
assets between blood relations of lineal descent - between live and
deceased, and between those alive - employment out of after-tax income
and caring for children should be taken out of the range of state action
regarding taxation. This means, Ladies and Gentlemen, that there are
areas of life the state has nothing to do with. Since we are thinking in
terms of families, and since we take the family as a basic unit of the
economy, in case of lineal descent of blood relations, the state has
nothing to do with the assets in terms of duties or taxes, and I am
saying this again: under the principle of protecting private property
and freedom of taxation.
Similarly, Ladies and Gentlemen, when we recommend to put the elements
of the single rate tax system together with those of a family supporting
tax system, I will propose to you to adopt the thought that when the
actual text of the tax legislation will be formulated, being aware of
the annual budget, a certain amount should be set, and up to this amount
we should take it that certain work income shall not be liable to state
taxation after one, two or three children because it belongs to the
family, the state has nothing to do with it.
Ladies and Gentlemen,
I recommend to the House to set a single income tax rate at 16 percent.
Distinguished Speaker,
Ladies and Gentlemen,
In order to create as many new jobs as possible, it is not only tax cuts
we need, but we must also start to cut red tape that is paralysing the
economy in Hungary, and the authorities should not rule, but should
serve people, should not set up barriers, but demolish them.
Furthermore, I feel we need to target SMEs directly to help them, it is
worth it and it is possible to do so, so that they can have
opportunities and access resources; therefore the Government is
recommending seven more measures to demolish bureaucracy and support the
SME sector.
Measure 6 - continuing with the previous line - in the area of
investment: today 51 permissions need to be requested; one third of them
will be eliminated by the state, meaning the Government.
I recommend as Measure 7 to abrogate the simplified temporary employment
currently in force - the name itself bears witness to the sense of
humour of the previous government when they called that system simple
employment - I mean the present one be abrogated and we should go back
to the old one; it was less bad, and let us start to develop a new
system that is not only less bad, but that is good for all of us.
We recommend as Measure 8 not to have to become an entrepreneur when one wants to rent a piece of real estate property.
We recommend as Measure 9 to give people back their right to freely make
fruit brandy. Ladies and Gentlemen, I'd like to inform you that this
way we put an end to a 90 year old struggle. Countryside people in
Hungary work hard, plant fruit trees, care for them and collect their
fruits. For 90 years they have been fighting with the government on
power to get back this freedom - granted to similar citizens in the
neighbouring countries. You may laugh at this, but I'd rather say that
this freedom fight ended after 90 years with the total and complete
victory of the insurgents.
As Measure 10, the Government recommends to heed the request of the
historical churches and charity organisations, especially now in times
of floods, and make donations tax free once again. This was also a
serious freedom fight in the past years. The previous political powers
stripped people of the freedom to run to help others, and instead of
supporting them, they really punished those who wanted to help. This
struggle seems to be settled too: I hope that the historical churches
and the charity organisations will once again be able to make good use
of this opportunity.
As Measure 11, the Government recommends to make the conditions of food
production, processing and sale by small producers easier. In order to
do so a separate motion will be submitted to the House.
As Measure 12 we recommend to widen the Széchenyi Card Programme, to
raise it to 50 million HUFs, and to make it usable for investment
projects and for the own part of application schemes.
Furthermore, I'd lie to inform the distinguished House, as Measure 13, a
separate motion will be prepared for the National Assembly and for the
public at large on the radical re-shuffling of the use of European Union
funds to the benefit of SMEs.
Ladies and Gentlemen,
So much for the measures the Government could set out before you as the
First - I stress the First - Action Plan with the aim of creating a new
economic system.
And now, Ladies and Gentlemen, allow me to talk about another issue, the
principle of mutual responsibility, because there have been decisions
made on this too, and we recommend Measures to the distinguished House.
Ladies and Gentlemen,
Another determining factor of the system of national cooperation is
mutual responsibility, which I know is a new phenomenon in Hungary, and
will create new conditions in politics. Therefore another large chapter
in our Action Plan recommends the introduction of the principle of
mutual responsibility in the Hungarian economy. This means that everyone
is entitled to the right to protection and to help when protection and
help are needed, and everyone must take a share in the common efforts of
the country.
It is a basic need, Ladies and Gentlemen, to help each other and to
extend help to those in need as soon as possible. In the present
situation of the country we must help those to whom the payment of the
unrealistically high overheads has become an unbearable burden with the
low wages and incomes. And even those must be helped, who, I am
convinced, cannot pay their mortgage instalments because of the
encouragement of the former irresponsible loan policy. We need to help
them within the system of national cooperation, especially after the
banks were immediately given state help when the loan crisis hit them.
At the same time, distinguished House, in the current situation we can
expect everyone to take his or her share in the burdens and tasks ahead
of us.
May I say a few words about the financial institutions, too. When the
banks were in trouble a year and a half ago, the state immediately
helped them. The state used people's money to help the banks, because
state money, even if it is just a loan, is still the people's money. So
now when the country is in trouble, the least we can expect of the
banks that managed to get out of the crisis after state help as winners
and in 2009 achieved a significant profit, take a fair share in
overcoming the problems. Well, distinguished House, I feel that nobody
can get out of mutual responsibility, not the Government, not the
financial institutions, nor state leaders or political parties. Everyone
must take a share in putting the economy back on its feet.
The Government has serious responsibility to protect the balance of the
budget in the present situation, therefore we will implement at least
four Measures.
Measure 14: An expenditure stop in state and budgetary institutions.
Measure 15: Transformation of the wage costs of the public sector.
Measure 16: Revision of budget expenditures at funds and in the ministries.
Measure 17: complete revision of contracts with outsiders and outsourced activities.
These Measures will bring in altogether some 120 billion HUFs of savings for the Budget.
Proportional share in the public burdens, especially in these times of
need, is important for the protection of public interests because it is
in the interest of all of us to put an end to waste and to the former
injustice in which the government put all burden on the people and only
on the people. This is the objective of the next eight Measures of the
Action Plan.
Measure 18: Levying a tax at a rate of 98 percent on severance payments
over 60 days and other extra wage benefits, such as redeeming holidays
and non-disclosure money in the public sector. The Government also
pledges to the MPs that by submitting this motion, it will create the
constitutional foundations for it.
Measure 19: Introduction of a wage ceiling of 2 million HUFs a month in
the state budget sector, including the National Bank. Distinguished
Ladies and Gentlemen, this means that in institutions with a budget
received from the central budget, even in those with full autonomy since
they use mostly public funds, a 2 million HUFs ceiling of gross wages
shall enter into force. I do not find it acceptable that while the
country faces serious challenges, in these institutions some people get a
monthly salary today of 4-5 million HUFs, or even sometimes 7 million.
Ladies and Gentlemen,
Measure 20: In state asset management we switch to block of wages
management, and I order an at least 15 percent reduction in the block of
wages. This means that at least 48.2 billion HUFs will be saved here.
This includes the 100 boards of directors functioning currently in state
owned companies, and we will cut their numbers to 10. This means that
from the number of 319 in the former political system, we drop to 60,
meaning that the number of positions in boards of directors will be
reduced by 260: we will cut these positions. The change in the
supervisory boards will be similar: we will stick to the minimum
statutory requirement, meaning that out of the present 636 places, 450
will remain, thus discontinuing the work of 180 supervisory board
members in the future.
Ladies and Gentlemen,
Measure 21: May I respectfully ask the distinguished House, the
fractions and the political parties lining them up for the elections
that under the principle of national cooperation, to cut the party
subsidies coming from the state budget already this year by 15 percent.
Measure 22: We will send budgetary inspectors to institutions using
significant amounts of public funds, even to those that enjoyed
institutional autonomy in the past. The Government once again pledges to
create the constitutional foundations for this.
Measure 23, Ladies and Gentlemen: Full stop on telephone, furniture and vehicle purchase and replacement in the public sector.
Measure 24: Establishment of a national assets management organisation.
We propose to establish a national assets management organisation so
that homes with failed loans would not be taken away from the owners,
but instead would be put under the supervision of a national assets
management organisation where the rights of families in debt but unable
to pay and the right to use the home could be settled via talks.
Ladies and Gentlemen, measure 25: Introduction of the bank tax. After
what I had said I propose that banks, insurance companies and financial
leasing companies pay a higher amount into the budget. Regarding this
year's inherited budget, this is an amount of 13 billion HUFs; I propose
to increase this amount this year to 200 billion HUFs.
Ladies and Gentlemen,
Since this is not an election mass rally, where we can let out feelings
and emotions flow more freely than usual, allow me to request you
attention for a few serious remarks on this point. The government is
strictly against all anti-bank tunes. We would like to make it clear
that the Government is convinced that no modern economy can be
competitive without a well functioning system of credit institutions.
Therefore Hungary needs stable, well functioning banks, insurance
companies and financial leasing companies, and Heaven knows what other
types of institutions doing financing. And the Government is committed
to keep the Hungarian banking system stable. Therefore I am saying once
again: these issues are not determined by counter-fans, by contrary
feelings, by feelings of retaliation, but simply by a request arising
from the principle of mutual responsibility.
This means that we would like to start talks with the banks on what the
basis for this tax should be - an important question - how this burden
is to be shared between the banks, the insurance companies and the
financial leasing companies, and we recommend to introduce it in the
system for three years, and then to withdraw it in three years. We hope
that in this time the Hungarian economy can pick up and grow, and will
be able to achieve its goals even without such an additional tax; an
agreement should be reached on the step-by-step withdrawal and
scheduling in three years between the financial institution system and
the Government of Hungary and the Hungarian Parliament.
I would like to inform you, in brackets only, that yesterday a decision
was made in Germany on the introduction of a bank transaction tax, so
the measure I am talking about is not at all alien to the current trend
in Europe which determine today's economic policy - that none of us is
very happy about.
Ladies and Gentlemen,
Finally there is another set of four measures here that I would like to
announce. In the system of national cooperation, social security is a
national issue, meaning the protection of people, families and
communities. The last four Measures of our Action Plan - altogether
there are 29 Measures in the Action Plan - provide protection to these
people.
First, in order to halt the spreading of foreign exchange based housing
loans causing so many problems, we propose that mortgage registration be
allowed only in case of HUF based housing loans. This way the number of
forex loan owners in trouble and causing so many economic and political
problems would not increase - we consider those with housing loans as a
separate quality of debtors - and no newer and newer families would
enter the system which clearly caused more trouble and misery than
opportunity and benefit, no matter how they had calculated when they
took out the loan that they would be better off than if they had taken a
HUF based loan.
As Measure 27, we propose to introduce a secondary food inspection so
that from now on the European waste food would not flow unhindered into
Hungary.
As Measure 28 I ask the Ministry headed by Minister Tamás Fellegi to
order a moratorium on the increase of the utilities tariffs and start
talks on the new system of pricing with the affected companies.
And as Measure 29 I ask you to support the Government decision to order a
moratorium on evictions until 31 December, 2010, and start talks
between debtors and creditors to settle the future of housing loan
owners in trouble.
Regarding the moratorium on eviction, I would like to share with you a
thought of mine: I am aware that the credit institutions and financial
institutions do not support this motion with the very logical and
understandable argument that if we take away the ultimate collateral
behind the loan, the loan would become uncertain, and the creditor can
get into trouble much easier. Well, Ladies and Gentlemen, this is true.
Nonetheless I must say that the distinguished House, the Hungarian
National Assembly and Hungarian politics in general spared the honest
debate right here in this House and in the general public on how we are
to understand the institution of mortgage in relation to housing loans
in Hungary: in the Anglo-Saxon way, or the continental way?
In the Anglo-Saxon way it is not a problem to evict the debtors in
trouble from the home since there are institutions in that world that
open new opportunities up for them immediately. In continental Europe
this is not so, and we do not have such institutions that could take
care of evicted families. Therefore in the calculations of the
Government the situation is that the financial institutions evict people
unable to pay their loan debts, then they become unemployed, they start
to subside in their existence, their families start to fall apart,
their children have to be taken care of by the state, and they are a
bigger burden on the whole to the public and to the state than if we
interfered at the right time.
Therefore I propose to carry on with the spared debate. In this debate
the Government will be of the position that the continental approach be
put into practice, meaning the establishment of a mortgage system in
Hungary that does not accept eviction.
Ladies and Gentlemen,
There are 29 Measures in the First Action Plan in the national
cooperation system, and we start to build a new economic system in
Hungary with these 29 changes that we hope you also find important.
Distinguished House,
This altogether means that now we can implement changes in two important
national issues, meaning putting the Hungarian economy back on its feet
and creating social security. Let the primary objective of our joint
effort be to give work to Hungarians that they can live on.
We want to create one million new jobs in ten years, and all of our Measures also serve this objective.
Distinguished House,
We overthrew the old system together, and we will build a new one
together, and I am planning that all of us together - not just the ones
sitting here in the House, but all the citizens organisation Hungary
together - will be the winners of this new era.
Everyone knows the size of the problems before us. There is no room for
guessing. Everyone could see the May budget data. There are enormous
challenges facing us, and the country is nearly not as well off as the
picture the previous government painted of it. Unfortunately I must say
that the figures of the budget are still rather ambiguous. We had
suspected this for a long time.
But all this is the past, part of it, and we are not looking backward
now. Naturally this does not mean that accounts should not be settled.
Account must be settled but we are interested primarily in the future
now, and the future requires us to take calm, but firm action and to
start to implement changes immediately, clear away the rubble, clarify
responsibilities and start reconstruction.
Distinguished House,
Allow me to share with you another thought: the biggest trouble in the
economy of Hungary at the moment is the size of the national debt. A
serious sin weights on the conscience of the past eight years.
Ladies and Gentlemen,
In eight years, the Hungarian national debt went up from 53 percent to
nearly 80 percent. This is an assault not only against contemporary
Hungarians, but against the future generations too. We must take this
into consideration.
Ladies and Gentlemen,
If the national debt were around 53 percent today, most of the troubles
coming from the global economy could be taken care of, I must say, as a
routine management of world economy. The trouble is that global
difficulties called Hungary to duel while she has nearly 80 percent of
national debts.
Ladies and Gentlemen,
It is not good to live on loans. But the consequence of the past eight
years is that Hungary does not stand on her own feet today, but lives on
loans. Debts will have to be reduced in the next few years, this is
certain; we must keep them under control, and reduce them if possible.
We all know the laws: the more loans we take, the more we will have to
pay back. The more we have to pay back, the more creditors worry if they
ever get their money back. The more people worry, the less people trust
our economy.
And since there is no such rule in the world that anyone should invest
in Hungary, as a matter of fact, today even money produced in Hungary
can be taken out by Hungarians to invest elsewhere - this is why we
acceded to the European Union so that all Hungarian citizens could be
entitled to do so - well, under such conditions if things do not go
well, if they are not balanced and under control, investors and
creditors will turn away from Hungary.
This does not mean, Ladies and Gentlemen, that we give up our ideas
regarding the new economic system the Measures just presented aim to
serve. We have to keep the financial situation under control and march
towards the goals identified and set out by the voters at the same time.
Ladies and Gentlemen,
An important precondition of the success of the system of national
cooperation is that we do not only see the truth, but we try to
pronounce it, as I have just done in my presentation, meaning that we
fund our economic policy on realities. We wish to build our future not
on quicksand, but on rock.
We received tremendous trust at the elections and I know that we need to
live up to it. You must know that this is the only important thing for
me and for us now: to live up to this trust. The road will be long and
curvy, and you know how tiring it is to climb upwards. But if we do it
together, we can reach the great, common goals that we have set for
ourselves so far. We will put the economy back on its feet, create law
and order; there will be social security once again in our country; we
will save health care and will restore democratic norms. This road leads
to a kind of Hungary in which it will feel good to all ten million
Hungarians to be Hungarian because we will have our shared values that
are indispensable in our lives: work, home, family, health and order.
There, in that kind of Hungary everyone can have a better quality of
life and more opportunities. I will need, Ladies and Gentlemen,
everyone's help. The new joint efforts of the new Government and of the
people can bring success. I will need your faith and the faith of all
Hungarians, your work, support and even encouragement.
It will take time for us to climb out of the current situation. They
took us deep in the woods for eight years, and it will take a few years
to finally get out for good. The way I see it is that the country has
enough energy and determination so that the way out would not last as
long as the lapse. We started to tread a difficult road, but we have
already had some successes together, and we will have even more. Our
goals are the same: we continue to be convinced that the Hungarian
people are very talented and strong. They always find a way if others
don't subjugate them.
Distinguished Ladies and Gentlemen,
More opportunities, more trust, more jobs, meaning a better tomorrow, a
strong and successful Hungary; we need to work towards this in the
coming years.
I would like to thank the honour of the unfailing attention of my fellow
Members of Parliament, and allow me to use this opportunity to thank
besides my fellow MPs to all Hungarians for supporting the system of
national cooperation; I thank all Hungarian citizens that even after
eight years of vicissitudes, they have not given up; I thank all the ten
million citizens of Hungary that after so much deception, lies and
injustice, they persevere and stick to their country and care for
Hungary.
Thank you for listening to me.
(www.fidesz.hu)